Organizational Control
What is organizational control?
- keeping an organization on track
- anticipating events that might occur
- changing the organization to respond to whatever opportunities or threats have been identified
- keeping employees motivated, focused
- working together to make the changes that will help an organization improve its performance over time
What is the definition of output control?
Output control is a management approach that focuses on measuring and managing the results or outcomes of an organization’s activities. It evaluates performance based on final metrics, such as sales targets or production numbers.
Define behavior control.
Behavior control in management refers to the process of regulating employees' actions and behaviors to ensure they work toward achieving organizational goals.
What is the differance between evolutionary and revolutionary change?
Evolutionary change:
- gradual, incremental, and continuous
- small adjustments and improvements over time without major disruptions to its operations or structure
Revolutionary change:
- rapid, radical, and often disruptive
- significant shifts in strategy, structure, or processes in response to crises or major shifts in the environment
Name at least three factors, why organizational control is important
1. efficiency: measure input and output to track resources
2. quality: monitoring performance metrics --> managers can maintain and improve the quality of goods and services
3. Responsiveness: assess and enhance responsiveness to customer needs
4. Innovation: track the success of new methods or technologies
Name at least three different financial measures of performance.
1. return on investment
2. operating margin
3. current ratio
4. quick ratio
5. debt-to-asset ratio
further: p. 318
Give two advantages and two disadvantages of direct supervision.
advantages:
- allows managers at all levels to become personally involved with their employees (mentor employees)
- lead by example --> help employees, develop and increase their own skill levels
disadvantages:
- expensive because a manager can personally manage only a relatively small number of employees effectively
- direct supervision can demotivate employees --> under such close scrutiny that they are not free to make their own decisions
Why is organizational change as important as organizational control?
Organizational change drives progress and adaptability, while control ensures that these changes are well-managed and aligned with strategic objectives. Both are crucial for long-term success.
What type of control is this?: A company plans to implement a new IT system to streamline its operations and improve data management. To ensure a smooth transition and avoid potential problems, the management team sits together and discusses potential risks and opportunities.
feedforward control
Give two examples for different organizational goals.
- boost sales through expanding the product line and opening new stores in emerging markets
- enhance customer service by implementing a new support system and providing additional training for service teams
Given three examples for Bureaucratic control rules.
1. Check in at least 10 minutes before your shift starts.
2. Absences or lateness without prior notification result in disciplinary actions.
3. Clear procedures for requesting time off or reporting sick days.
Give one example each of a top-down change and bottom-up change.
top dow: Due to new regulations, the management introduces stricter procedures. These rules are handed down to lower level managers who must enforce them across all teams.
bottom up: Frontline workers identify inefficiencies in their daily operations and propose a new workflow. After testing the approach, the managers approve the change.
How can step 2 of the control process in a fast-food restaurant be performed?
- counting how many customers their employees serve
- the time each transaction takes
- how much money each customer spends
- observe each employee's behavior
What are the key factors managers need to consider when creating and managing budgets?
- allocation of resources to subordinate managers
- decide how much money to allocate to the various functions
- evaluated ability to stay within the budget and to make the best use of available resources
- evaluate each division's contribution to corporate performance
What is the extension of MBO (Management by Objective) called and what exactly is it?
MBO: A goal-process setting, typically accomplished by a manager and each of his or her employees, that provides a framework to evaluate employee performance.
balanced scorecard: A management control system that takes a comprehensive look at an organization's overall performance using four measures: financial, customer service, internal business processes and the organization's capability for strategic learning and growth.
Describe Lewin's Force-Field Theory of Change in three sentences.
Kurt Lewin's Force-Field Theory of Change explains that organizations are resistant to change due to internal forces like structure, culture, and control systems, while external forces from the environment push them toward change. When these forces are balanced, the organization is in a state of inertia, and no change occurs. To initiate change and reach new performance levels, managers must increase the forces for change, reduce resistance, or both.